We consider a stochastic fluid EOQ-type model with demand rates that operate in a two-state random environment. This environment alternates between exponentially distributed periods of high demand and generally distributed periods of low demand. The inventory level starts at some level q, and decreases linearly at rate a during the periods of high demand, and at rate b < a at periods of low dem...

This paper investigates the effects of information sharing and early order commitment on the performance of four inventory policies used by retailers in a supply chain of one capacitated supplier and four retailers. Model parameters and operating conditions are emulated from a local business supplying a standard product to its retailers. Through computer simulation and subsequent analyses, we f...

We examine cooperative games in supply-chain management termed Inventory Games. Supply-chain management has non-cooperative and cooperative interactions between the participating players. We provide a concise survey of cooperative inventory games in the form of extensions on two basic problems. For deterministic games, Economic Order Quantity-like policies with joint replenishment are of primar...

An EOQ (Economic Order Quantity) model for a deteriorating item with quadratic demand pattern and quadratic holding cost and constant deterioration rate is considered in this paper. In addition, shortages and partial backlogging are allowed. It is assumed that the backlogging rate acts as not only a variable, but also depends on the length of the waiting time up to next replenishment during the...

February, 2008 We consider supplier diversification in an EOQ type inventory setting with multiple suppliers under binomial yield and zero leadtimes. We characterize the optimal policy for the model and show that, in this case, it does not pay to diversify and it is better to use a sole supplier. This result constitutes a contrast with the previous ones in the literature assuming various yield ...

R etailers must constantly strive for excellence in operations; extremely narrow profit margins leave little room for waste and inefficiency. This article reports a retailer’s challenge to balance transportation, shelf space, and inventory costs. A retailer sells multiple products with stochastic demand. Trucks are dispatched from a warehouse and arrive at a store with a constant lead time. Eac...

This paper seeks the critical factors for a correct choice in the components set up along the supply chain. ABC classification was made for all the suppliers according to the supplied items for the company. After a demand analysis, the seasonal nature and trend during the timeline, we used the last four years registers where is shown a decreasing behavior in 30% of the items; Economic Order Qua...

The classic Economic Order Quantity model assumes that an order is paid for at the time of its receipt. In practice, suppliers may require purchasers to pay a fraction of the order’s cost in advance and sometimes allow them to divide the prepayment into multiple equalsized parts to be paid during a fixed lead time. In this paper, an EOQ model with multiple prepayments under three different cond...

Inventory models with imperfect quality items are studied by researchers in past two decades. Till now none of them have considered the effect of substitutions to cope up with shortage and avoid lost sales. This paper presents an EOQ approach for inventory system with shortages and two types of products with imperfect quality by one way substitution. Our model provides significant advantage for...